August 7, 2023

Escalating attacks during Russo-Ukrainian war raise uncertainty for corn, wheat markets

Corn and wheat prices continue to be impacted by the increase in recent attacks between Russia and Ukraine.

"Just since the end of the Black Sea Grain Initiative, strikes carried out by Russia have destroyed 180-thousand tons of grain inside Ukraine, including 40-thousand tonnes of grain just in 24 hours," said Matthew Miller, spokesperson for the United States State Department.

Dave Salmonsen with American Farm Bureau said he's concerned about the ability to move corn and wheat out of Ukraine.

"What had seemed to be a fairly stable, within a war zone — if there's anything such as known as stable inside a conflict — way of moving grain, has now been stopped. And Ukraine has to find other ways of getting their grain out," said Salmonsen.

Miller said Russia's actions aren't just affecting Ukraine—they're also affecting global food supplies.

On August 4, it was reported that Ukraine attacked a Russian warship and a major naval base in Russia, a factor blamed for driving corn and wheat prices higher in the grain markets.

Since the expiration of the Black Sea Grain Initiative on July 17, Ukrainian officials said Russia has hit 26 port facilities and destroyed almost 200-thousand tonnes of grain.

- Hoosier Ag Today